Canara Bank Plans ₹4,500 Crore AT-1 Bond Raise

Canara Bank wants to raise money by selling a special type of bond.

It may collect up to ₹4,500 crore through AT-1 bonds.

The bank also has approval to raise up to ₹4,000 crore through another type of bond called Tier 2 bonds.

The AT-1 bonds will not have a fixed end date, but the bank may be able to repay them after five years if regulators allow it.

Investors may receive interest of about 7.85%-7.90%.

The proposed issue is expected to be offered through the NSE on September 16.

Canara Bank says it will use the stronger capital position to support business growth.

The bank also said it has mobilised $5.80 billion through an FCNR(B) swap facility.